Vt. Stat. tit. 16 § 1946a
Payments received by a member of a retirement system of another state or political subdivision thereof, whether called a pension, an annuity, a retirement allowance, or any other name, shall be exempt from taxation, including income tax, provided that such member was at the time of retirement a member of the teaching or supervising staff covered by such retirement system. The term "teaching or supervising staff" shall include the superintendent, assistant superintendents, principals, supervisors, assistant supervisors, directors, assistant directors, examiners, supervising school physicians, supervisors of health education, supervising nurses, and all other persons permanently employed in giving or supervising instruction in a public day school, normal school, teachers' college, or other educational institution located in, and supported and controlled by, any state or political subdivision thereof.
16 V.S.A. § 1946a